Nihon Kohden Corp. (6849) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Asahi Intecc Co., Ltd.

HOYA Corp.

Terumo Corp.

Shimadzu Corp.

Sumitomo Bakelite Co., Ltd.

Nakanishi, Inc.

Nihon Kohden Corp.

Fukuda Denshi Co., Ltd.

Olympus Corp.

JEOL Ltd.

Sysmex Corp.

Why is Nihon Kohden Corp. ?

Weak Long Term Fundamental Strength with a 3.71% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 3.71% over the last 5 years

Flat results in Mar 26

INTEREST(Q) Highest at JPY 112 MM

With ROE of 8.32%, it has a fair valuation with a 1.35 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -12.05%, its profits have fallen by -6.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.05% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nihon Kohden Corp. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nihon Kohden Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nihon Kohden Corp.

-12.05%

-1.28

30.61%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.71%

EBIT Growth (5y)

-3.54%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

1.18

Tax Ratio

26.90%

Dividend Payout Ratio

35.85%

Pledged Shares

Institutional Holding

0.74%

ROCE (avg)

17.81%

ROE (avg)

11.13%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.35

EV to EBIT

11.28

EV to EBITDA

8.97

EV to Capital Employed

1.39

EV to Sales

0.93

PEG Ratio

Dividend Yield

ROCE (Latest)

12.30%

ROE (Latest)

8.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 21,055 MM

RAW MATERIAL COST(Y)

Fallen by 0.65% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.02 times

NET SALES(Q)

Highest at JPY 71,086 MM

OPERATING PROFIT(Q)

Highest at JPY 11,251 MM

PRE-TAX PROFIT(Q)

Highest at JPY 10,781 MM

NET PROFIT(Q)

Highest at JPY 8,694.46 MM

EPS(Q)

Highest at JPY 49.94

-11What is not working for the Company

INTEREST(Q)

Highest at JPY 112 MM

Here's what is working for Nihon Kohden Corp.

Operating Cash Flow

Highest at JPY 21,055 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 71,086 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 11,251 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 10,781 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 8,694.46 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 49.94

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 2.02 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.65% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 1,639 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Nihon Kohden Corp.

Interest

At JPY 112 MM has Grown at 34.94%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 112 MM

in the last five periods and Increased by 34.94% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)